Mill Levies & Property Taxes 11/30/2018 Mill Levies & Property Taxes Mary Lynn Christel Public School Finance and Operations Division Christel_m@cde.state.co.us – 303-866-6818 October 2015

Agenda Definitions Timeline Assessed Valuations Mill Levies Questions

Definitions Mill AV – Local Share 11/30/2018 Definitions Mill a mill equals one-tenth of one percent (.001) AV – Assessed value is a percentage of the actual value of a property. Residential property is assessed at 7.95% Commercial and most other property is assessed at 29% Local Share Local share is comprised of property taxes collected through the levying of the total program mill and specific ownership taxes

11/30/2018 Timeline August 25 - assessors send preliminary AVs to districts and CDE 2015 is reassessment year (odd years) November 23 – CDE sends preliminary certification worksheets to districts No later than December 10 - assessors send final AVs to districts and CDE No later than December 15 – district Board of Education certifies mill levies by Board resolution and submits to county commissioners Mills levied will generate property tax revenues for current fiscal year.

11/30/2018 Timeline (continued) December - AVs are plugged into the school finance formula and the local share is determined based upon mill levies Legislative Council bases estimates for the following year on the December actuals – built into School Finance Act Spring 2016 – property taxes collected

Property Tax & Assessed Values 11/30/2018 Property Tax & Assessed Values Mill levies Equals one-tenth of one percent (.001) Assessed values based on percentage of actual value Residential – 7.96% of actual Most other (commercial) – 29% In 2007-08, total program mill levies were frozen at 27 mills or less Four districts that have not passed TABOR elections are a bit different AV X mill levy = property taxes $10,000,000 AV X .027 mills = $270,000 property tax

Mill Levies Mill Levy Certification Worksheet 11/30/2018 Mill Levies Mill Levy Certification Worksheet Total Program - mill levy set to generate local share of total program funding Capped at 27 mills. Cannot go up from prior year. Categorical Buyout Used by district which are able to fully fund total program Voter approved overrides – mill levy approved by voters to provide funding for district Might be a certain dollar amount or a fixed mill Hold harmless and excess hold harmless – result of 1994 Act

Mill Levies (continued) 11/30/2018 Mill Levies (continued) Abatements – mill levy to recapture property tax refunds or cancellations based on revaluations Will change from year to year Bond Redemption – mill levy set to generate funds to pay off debt principal and interest (voter approved) This levy can potentially float up and down depending on the AVs Transportation Fund – funds excess transportation costs (voter approved)

Mill Levies (continued) 11/30/2018 Mill Levies (continued) Special Building & Technology Fund – funds technology no more than 10 mills, no longer than 3 years (voter approved) Full Day Kindergarten Fund – funds implementation of full day kindergarten excess costs (voter approved) Other – Charter Schools (voter approved)

Assessed Valuation Gross Assessed Valuation Net Assessed Valuation 11/30/2018 Assessed Valuation Gross Assessed Valuation (less) Tax Increment Financing (TIF) Net Assessed Valuation Abatements/Refunds (total across all counties) Full Funding Mill Levy – mill levy district would have to certify if no state aid Funding received from state = state share District must certify exact same mill levy across all counties.

Mill Levy Limits Voter Approved Override Limits 11/30/2018 Mill Levy Limits Voter Approved Override Limits Override calculation worksheet 25 percent of total program funding (before negative factor) plus FY2001-02 Cost of Living Amount (fixed) 30 percent of total program funding if identified as a small rural district (110 across state) Includes voter approved override, hold harmless, excess hold harmless and cost of living mill (if any)

Calculate a Mill Voter approved override $500,000 Current Assessed Valuation $265,000,000 How many mills for the taxpayer? 500,000/265,000,000 *1000 = 1.887 mills Impact to homeowner with $300,000 house $300,000 * .0796 = 23,880 assessed value 23,880 * .001887 mills = $45.00 per year